George Makhoul, Dilon Technologies - Assisting the Fight Against Breast Cancer | LSI USA '24

Speaker 1  0:00  
Good. Morning,

George Makhoul  0:03  
my name is George    Makhoul. And I'm the CEO of Dillon technologies, which is a commercial stage women's health care company that has expanded into bio surgery after we made the hemo blast acquisition in September of 2022. We're based in Newport News, Virginia. And we have two subsidiaries one in Syria, Israel, where the margin probe product is manufactured. The other is in Lyon, France, where the hemo blast product is manufactured. We are pushing up on about 80 employees. Right now, that's primarily driven by our commercial footprint we have in the US, which is a direct sales force. We have an international distribution team for Oh, US sales. And right now we're raising capital in a cross round, looking for another 15 to 25 million in capital to help us fund our commercial operation, which is going well, and we're looking to become profitable by sometime in mid 20/26. I won't spend a lot of time on our leadership team. What I can tell you is this comprised of individuals who have had large companies, small companies success, and they're well positioned to help us take our company to the next level that we're looking to achieve. I'm also very happy with the CFO we hired late last year. Tim Jetty came to us from Medtronic, who he spent about 15 years there managing over 6 billion in the heart and vascular business. And then he spent the last two years at a startup company where he was managing a small organization says there's a good balance of large and small company feel for them right there. All of our products are PMA approved. And two of them are class three PMA. So we have really good approvals on our products. And what's great is we've got the margin per product, which is the first and only product and its class. It's approved for breast cancer specifically, for real time margin assessment and a $250 million market opportunity. We have our navigator product, which is the second place product in that market of gamma probes behind near probe, we're launching a next gen product that will be best in class next month that will allow us to go after the lion's share of that business. We also have a 2d specimen imager, which is great quality at a good value for hospitals. I won't spend any time on a co pilot portfolio today, that's run by a separate 1099 Salesforce that is doing their own piece that's unrelated to what our direct sales force does. And our email blasts product is a very disruptive product and hemostasis. It's best in class product addressing a $1.5 billion market opportunity. So we've got a very strong portfolio for breast, the chemo blast, add something for our reps that they can be in a hospital every day all day. And it doesn't really matter where they are in the country for that. When you look at our commercial footprint, we ended last year with 16 reps, we had increased seven of them to get us to 16. So you got hired around November, December, we're looking at the 30 reps. By the end of this year, we've added another seven. So we're at 23 reps as of today. Some just got hired at the end of February and early in March. So we have our hiring profile, which is getting people who are experienced in getting things through the value analysis committees, people who understand surgeons understand surgery, and the operating room environment. And recruiting has been going very well for that people are very enthusiastic about this portfolio they can sell to all the customers in a hospital. So we anticipate to be around $70 million by the end of 2026. When you look at where we were last year, we grew the company 20%. This year, we expect to grow 50%. And next year, we should grow over 40%. So when you look at how we're tracking this year, we're well ahead of our budget schedule for the first quarter of 2024. We've actually over achieved that budget already. So in our market in the breast cancer market, which is where we focus a great deal of our time and attention as a lumpectomy market. And we look at lumpectomies of patients off for this because they want to conserve their breast tissue. And anywhere you pick up data between 20 and 35%, you'll find there's going to be a re excision for a patient once they go into the primary lumpectomy. So once they have that primary procedure, they're gonna wait four to seven days until they get that final pathology report back. And that's a stressful time for the patient to know if they're going to be done with surgery can start their treatment or if they have to come back in. So when they find out they have to come back in now their chemo is delayed, the radiation is delayed the risk of a surgical complication increases and a patient who wanted to spare their tissue may now opt to have a mastectomy done. On top of that there's a cost to the healthcare system. It's a minimum $16,000 for the RE excision. So how do you solve that you saw that with a product like margin Pro. This product is using RF spectroscopy to determine the positive edges on the margin. So as you see here, you have a product now it's quick. It's accurate, and it's binary, you get a negative or a positive reading instantaneously during this procedure. So now you know exactly what tissue and margins you have to reshape in that we plan to double our business in this product this year. We have a lot of data and a lot of evidence behind it. We had another paper recently published in September it was a value paper showing that when you use margin probe and paid for you save $1,000 per procedure when you compare this to a full cavity shave where a surgeon may take six prophylactic shaves right off the get go. We have a global presence. We're going to expand that This year, we've also launched a pivotal phase of our next generation margin probe, which preliminarily has shown 80 to 90% sensitivity, which we think is going to help us reduce the number of false negatives. And this could help us take this to become a standard of care. So there's a wealth of evidence behind this product or several papers that are published behind it. And all of the data shows that you're reducing re excision rates when you use this product. And just most recently, there was an independent study done by the British Journal of surgery published this year, showing that they looked at 12 of our published papers, over 2000 patients, and they all showed about a 54% reduction in re excision. So the data is the data no matter how you slice it. This is also a platform technology. So we can expand this into lung to prostate to cervical to brain, these are all going to be PMA applications for us. But we'll have that ability to expand this platform into other areas of cancer, or navigator product, we're launching our next gen, we're in a few 1000 hospitals across the world. And our next gen is going to allow us to be the best in class, it's going to be a product that's got a rechargeable battery in it, it's a product that's going to be able to be used in the autoclave sterilization is a big deal for Jayco. So now if your SPD team is not great, you can just flash this in the autoclave works well there, and it will be the most sensitive probe on the market will pick up a lower dose of radiation, which is better for the patient better for the hospital, and just better overall. So this product is going to do well. For us. We have our TrueView specimen analyzer which we're capitalizing on the acquisition of facts that Tron by Hologic, they're obsoleting that technology, the folks who develop that technology developed is TrueView. So we're giving a very high quality image at a phenomenal price for the hospitals creating value for them. So this product is hemo blast. This is the first and only combination college and profits in a powder form that says the only indications for minimal mild and moderate bleeding. No other product has those three indications in their labeling, which is level one, level two, level three bleeding, which is the finest up to 117 millimeters per minute of blood flow. So this product is made of collagen, which is a mechanical hemostat thrombin, which is the active component that will convert the fibrinogen to fibrin. And you've got the conjoined sulfate, which will make that stick to the tissue. Their product can be used in MIS surgery, robotic five millimeter trocar laparoscopic either one, it doesn't matter. But this was very rigorously developed with a bleeding skill at the FDA mandated to have to have a qualitative and quantitative measure of what levels of bleeding are going to actually achieve. So when you look at this product, and you look at how it works, right, there's some great advantages to it. And you'll see this video playing behind me, this can work on a level three bleed, that's going to show you a really strong bleeding and minimally invasive surgery. So why is this product so much better than what's out there by the competition? One we've got great data, we've got head to head data versus gel, foam and thrombin. That was part of the pivotal no one's ever done that before, there's head to head data versus flow seal and market leader and head to head data versus Arista, which is a powder it's a single component product, but people tend to try to compare you to that. So this is ready to go out of the box. No mixing, no prep, no refrigeration, no thawing, you can open it up, there's no gas applicator you need, you can use this product. And it can be readily available when a surgeon has for wet either hands in 15 seconds. So it's very versatile. It'll cover a wide surface area about an eight and a half 11 sheet of paper for 50 centimeters squared. And it's just very easy for the hospitals to use this product. So once they hold the pressure on it, you'll be able to see how the product works that comes off. And what's nice about it is it's got a nice translucent glaze behind it. So when a hemostasis is achieved, a surgeon can still see the parenchyma of the tissue, they could put a stitch through it, they can buzz it, they can hit it with their instrument, it won't matter but you're gonna have a nice clean surface there. So this also has a wealth of evidence level one, multicenter prospective randomized trial head to head data, there's over 12 one published out there. And when you look at how we compare to the rest of the companies, our price point is right on. It's a low price point the ASP has changed 1% In five years, we check all the boxes of the other companies don't have we're going to be launching in spine when we have our neural exclusion removed by the end of the year from the FDA, and then we'll expand into Urology. So this gives Dylan a great opportunity across multiple surgical specialties. We're in 13. Now we'll be in 15 by the end of the year, and this gives us as a company abroad standing across all the different surgical specialties so we could expand organically licensed for acquisition other tech so thank you for your time today.